More than 140 gas stations in South Africa ran out of fuel in the hours leading up to record price hikes, exposing logistical weaknesses amid exceptionally high demand.
The rush by motorists to fill up their tanks before the new prices took effect placed unprecedented pressure on the distribution network, leading to temporary fuel shortages in several regions.
Data released on Monday, March 30, indicates that 143 stations ran out of diesel and 136 ran out of gasoline, at a time when demand is estimated to have reached levels up to three times higher than normal.
However, industry leaders say the problem lies not in a lack of fuel in the country, but rather in the ability to get it to the stations quickly.
According to Siganeko Magafela, head of supply security at the South African Fuel Industry Association, storage depots still have product available, but distribution networks are under pressure.
“Logistics cannot keep up with demand at gas stations right now. Some companies report that demand [in volume] is three times higher than normal,” he said.
In recent days, the association has begun monitoring the number of “empty tanks” for both diesel and 95-octane unleaded gasoline, based on data from industry members across the country.
Magafela stated that these numbers change constantly as fuel is delivered and gas stations are restocked, with priority typically given to locations that have run out of the product.
Despite the disruptions, the association’s supply manager emphasized that the good news is that fuel remains available at the depots. “The chances of recovery, in terms of the accumulated delay, are high… it’s just a matter of time,” he assured.
The pressure on local fuel supplies comes amid growing concern over global energy markets, following tensions involving Iran and the closure of the Strait of Hormuz, one of the world’s most important oil and gas transport routes.
The closure has heightened fears of disruptions to global supplies and exacerbated already high fuel costs.
South Africa has some protection in this scenario, as its crude oil comes mainly from Africa and the Atlantic basin, rather than the Middle East.
Calls for government support
Nevertheless, the country remains vulnerable to diesel shortages, given that most of its refined diesel imports come from countries such as India, Oman, the United Arab Emirates, and Saudi Arabia.
Another complicating factor is how diesel is priced. Unlike gasoline, whose price is regulated, diesel prices are not set by the government.
Wholesalers and retailers are free to set their own prices, which creates room for significant differences between gas stations.
It is expected that, in April, diesel will increase by about $0.63 per liter and gasoline by approximately $0.37 per liter.
Concerns have also arisen that some gas stations may be holding onto existing stock to sell it at much higher prices after the increases take effect.
Source: BusinessTechSA / SABC
